Gold, Silver Price Crash: In a dramatic turn of events, the bullion market has witnessed a sharp and rapid correction, with silver plunging nearly 50 per cent and gold falling around 25 per cent within just 53 days from their January 27 highs.
The article covers how precious metals are trending among investors and what factors will drive them further.
Gold, Silver Price Trends
On MCX, silver touched an all-time high of Rs 4,20,048 and has now dropped to approximately Rs 2,06,360. Meanwhile, gold declined from Rs 1,80,779 to around Rs 1,35,800 during the same period. This steep fall reflects a broader global risk-off sentiment. The correction is largely driven by a widespread sell-off across asset classes, including Dubai's real estate market, cryptocurrencies, and equities.
Why Precious Metals Are In Focus?
Also, the US Federal Reserve's hawkish stance-indicating limited rate cuts in 2026 and even the possibility of rate hikes-has strengthened the dollar, reducing the appeal of non-yielding assets like bullion. ETF inflows have also weakened, with emerging outflows adding further pressure. Geopolitical tensions have intensified uncertainty, keeping market sentiment fragile.
Looking ahead, the downside may continue in the near term. Gold could test Rs 1,15,000 (internationally $3450-3500), while silver may slide toward $50 (around Rs 1,75,000 MCX). However, historically, after initial war-driven corrections, bullion tends to recover in the later phase, suggesting potential support in the second half.
Silver Price Today
Silver prices nosedived to hit their lower circuit in futures trade on Monday, tumbling by Rs 20,409 to Rs 2.06 lakh per kilogram amid weak global trends and sustained selling pressure.
On the MCX, silver for May delivery slumped Rs 20,409, or 9 per cent, to Rs 2,06,363 per kilogram, its lower circuit limit.
Analysts said the sharp fall came despite escalating tensions in West Asia, as broader macroeconomic factors weighed heavily on precious metal prices.
Gold Rate Today
Gold prices plunged sharply by Rs 8,089 to Rs 1.36 lakh per 10 grams in futures trade on Monday, tracking a global selloff amid rising inflation fears and a firm US dollar.
On the MCX, the yellow metal for April delivery slumped by Rs 8,089, or 5.6 per cent, to Rs 1,36,403 per 10 grams.
Last week, gold had dropped Rs 13,974, or 8.82 per cent, to close at around Rs 1.44 lakh per 10 grams on the commodities bourse.
Analysts said the precious metal opened with a sharp gap down and is likely to extend its losing streak for the fourth consecutive week.
Gold resumed with a gap down on Monday and is likely to continue its downside momentum for the fourth consecutive week amid tensions in West Asia that have stoked inflation fears and rate hike bets in the near future, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
Gold spot USD : 4273
Down ~5% today, close to wiping out this year's gains
Reason for fall:
- As the war in the Middle East entered its fourth week and the US and Iran traded threats of new attacks
- As prices were already at elevated levels, many investors are booking profits
- Shift in interest rate expectations globally, With crude oil prices surging
- This has reduced the chances of interest rate cuts and instead raised the possibility of rate hikes.
- Higher interest rates reduce the appeal of gold because it does not offer fixed returns like bonds or deposits.
Will the fall continue for now?
According to a report by Kedia Advisory, looking ahead, experts believe that the decline may continue for some time. Gold could fall to around Rs 1,15,000, while silver may weaken to nearly Rs 1,75,000 on MCX.
However, if we look at the historical trend of gold and silver, it shows that after declines triggered by wars or similar tensions, prices tend to rise again later. In such a scenario, this dip could turn into a good opportunity for long-term investors and jewellery buyers, especially if prices stabilize in the coming months.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
(With agency inputs)
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